Brown-Forman Corp.'s (BFA, BFB) Board declared a special cash dividend of $4.00 per share on Class A and Class B Common Stock. The company chose to make the payment in calendar 2012 because of the uncertainty surrounding future dividend tax rates. Brown-Forman believes the special dividend is the best utilization of the company's strong balance sheet.
Brown-Forman Chief Executive Officer Paul Varga said, "Even after this special dividend, we retain ample capital capacity to make long-term investments in our business, such as the current expansion of the Jack Daniel Distillery and strategic acquisitions."
The special dividend will be paid on December 27, 2012 to stockholders of record on December 12, 2012. The special cash dividend is in addition to the 9.3% increase in the company's regular cash dividend announced by the company on November 15.
For comments and feedback: editorial@rttnews.com